Charter Club Funding Fiasco

Published HBT 20 May 2015

The decision by the National Service Club members to reject a Hastings District Council merger proposal is an own goal for the council who seem to believe that if enough money is thrown at a problem it will go away. We have seen similar thinking with the Opera House and other recently delayed or cancelled projects. The most recent idea was to support a merger of various service clubs with nearly $2 million of ratepayer funding. 

Many chartered clubs are experiencing declining support. The Hastings, Napier and Napier Cosmopolitan Clubs have all closed. Members now tend to be older and a further strengthening of drink driving laws is likely to be eating into members involvement. The RSA, Hibernian and Heretaunga Clubs have already merged, the RSA premises in the centre of town have been sold and must soon be vacated, and new premises are proposed on the Heretaunga Club site away from the CBD. The National Service Club on edge of the Hastings CBD seem to be holding their own as evidenced by members rejection of the merger plan, although their premises will need some earthquake strengthening sometime in the future.  

The reasons for Council getting involved are unconvincing. The project was poorly conceived, poorly researched, and should never have been presented to council. The Mayor who was the driving force was in China and unable to attend the special council meeting called at short notice to supposedly discuss the issue. 

It has been reported that I had walked out of this public excluded council meeting when the issue was being discussed though I prefer to say I was not willing to continue taking part in a process I considered  farcical. I believed it wrong that both the media and public were prevented from hearing details of a proposal to spend nearly $2 million of ratepayers money. There was a lack of  transparency and an inability or unwillingness to answer many crucial questions, plus it was clear I was going to have no impact on the outcome. The entire process seemed staged to endorse an outcome that had already been decided on. 

Specifically some of my concerns were:

- The Clubs were not represented so councillors had no opportunity to question those running these organisations.

- The only accounts provided were for the RSA  March 2014 financial year. There were no forecasts, budgets or other estimates for the proposed combined clubs which meant councillors could not asses the financial viability of the new entity. 

- It was claimed a new city centre premises will benefit the Hastings CBD which clearly is already struggling, yet no evidence was provided to demonstrate linkage between the clubs and the CBD,  even though both the RSA and National Service Clubs are presently within walking distance of the shops. Additionally only the RSA will be shifting and the National Service Club will remain close to the CBD. 

- No membership history was provided so past and future trends could not be determined, nor was there any information on how many members use the facilities on a regular basis. 

- Claims the viability of the three clubs would have been enhanced failed to account for the additional risk of their taking on significant debt which could have imperilled rather than secured their future. 

- Some councillors claimed a similar combined facility in Blenheim proved it would work, yet no specifics on membership, financials, or other matters were provided. 

My own view is this matter has been handled in a highly unsatisfactory manor without councillors being given much of the information needed to make a wise decision. The cost in staff time is unknown but must be considerable and a figure of $10 000 seems possible. Whilst some public consultation had been proposed people are busy with their jobs, family and other issues, and rely on good governance by their councillors to make sure their money is spent wisely. Expecting widespread and representative community involvement in submissions is unrealistic. This yet another example of council being steamrolled into supporting an idea of doubtful benefit. Yet had it proceeded debt and rates for everyone would have increased.